MALAYSIA MRO BUSINESS

I used to fly the Genting helicopters 32 years ago I couldn't help remembering the trip  flying  to Singapore, a place where we didn't operate.  I was asked to fly the helicopter to Singapore for the regular and compulsory Category D maintenance!!   

I did ask the question to my boss then why Singapore, and answer invariably was we didn't  have the service here in Kuala Lumpur. Only Singapore has the service.  I also remember reading an article, when Tony Fernandes after buying over Air Asia 2001, and  he also had to send his  Boeing 737 to Singapore for maintenance for the obvious reasons - more cheaper and efficient services.        

Folks, welcome to the world of aircraft Maintenance Repair and Overhaul (MRO)  industry where Malaysia lacks competitiveness. 

Now how big is the MRO business in Malaysia? 

Malaysia has about 400 aircraft  registered with the DCA (300 fixed wing airliners; 30 general aviation; 50 light aircraft and 50 helicopters and 150 odd with the RMAF, Navy and Army.  Lets omit the light aircraft as the cost to service it is quite negligible. 500 aircraft at an average of RM 500,000 per aircraft  a year each the total business a year is about RM 250.0 million. Not big by comparison to other industries but good enough to sustain few thousands workforce.  More importantly good enough to provide learning curve for the other big industry - aircraft and component manufacturing.  Also better still good enough to attract more foreign aircraft from the region to service their aircraft in Malaysia IF we are good enough. Now this is the real synergy.

Why aircraft need maintenance?

Like any machines an aircraft requires regular maintenance which is compulsory under the law. Unlike personal motor cars where maintenance is at the discretion of the owners, an aircraft must be maintained when certain flying hours has been recorded.  Aircraft not being maintained according the law risk the ban from landing at the host nation.

The International Civil Aviation Organization  has designated four types of maintenance checks for aircraft as follows:-

A - 500 - 800 hours  -  can be done overnight on the parking apron itself

B - 3 to 6 months  - 2 to 3 days in the hangar.

C - 15 to 21 months - 1 to 2 weeks in hangar.

D - 5 to 6 years - Heavy Maintenance Visit (HMV)  3 weeks to 2 months in the hangar.  

So from the above, before an aircraft goes for the Check D the most heaviest maintenance, it would have gone about 60 times Check As, 20 times Check Bs, and 3 times Check Cs.

A check D on a Boeing 747 could easily cost the owner about RM 3.0 million.   So folks there is big money to be be made from MRO business.

What is major difference between maintaining a car and an aircraft? 

My answer is not much work difference as in cars, it all about changing expired components with new ones and testing it on the aircraft before certifying it.  The major difference is documentation and the document to be signed by the authorised personnel - the Licensed Aircraft Engineers (LAE). Your car's oil filter  can be changed by your favourite and trusting mechanic who has no qualification except experience. But changing old filter in an aircraft  requires documentation that need to be certified by the LAE! 

To become a LAE one needs to pass certain exams and three years work experience before the DCA could license them.  Once they are licensed they can then sign all the documents needed for the maintenance.

Now our case versus Singapore in the MRO business, it is not that we are lacking in qualified personnel as our universities are  producing 150 aerospace engineers a year. Our case is lacking the capability in building the MRO business and sustaining it.  

So folks it all about management - marketing and entrepreneurship, which Singapore has and Malaysia lacks.  Being competitive, efficient and effective are the key words.